The year 2019 witnessed a strong performance by banks operating in the Egyptian market, compared to 2018.
According to a survey conducted by Daily News Egypt to study the results of bank’s annual activities operating in the Egyptian market, 11 banks have achieved a net profit of about EGP 36.903bn by the end of December 2019.
As usual, Commercial International Bank (CIB – Egypt) tops the list of these banks with a net profit of EGP 11.8bn, while QNB Alahli coming in second place with profits amounting to EGP 8.522bn.
Banque du Caire came in third place with a net profit approaching EGP 4bn, and Faisal Islamic Bank – Egypt came fourth with profits of EGP 2.710bn.
Islamic Development Bank IDB achieved good performance levels, with profits reaching EGP 512m. UNB came last with profits reaching EGP 429.283m.
- CIB
The CIB achieved an increase in its net profit by 23.5% in 2019, achieving EGP 11.8bn, compared to profits amounting to EGP 9.6bn in 2018.
The bank’s net income from revenue increased to EGP 21.58bn, compared to EGP 18.14bn, with a growth rate of 18.9%.
The results of CIB revealed that the bank’s customer deposits portfolio increased by 6.7% during 2019, to record EGP 304.5bn, compared to EGP 285.3bn at the end of 2018.
The portfolio of loans and facilities for customers recorded EGP 119.3bn, compared to EGP 106.3bn, with a growth rate of 12.2%.
CIB’s revenues in the fourth quarter of 2019 (Q4) reached EGP 6.15bn, an increase of 18% on an annual basis, and a 13% increase in annual revenues to reach EGP 23m.
2- QNB Alahli
QNB Alahli Bank revealed that its net independent profit reached EGP 8.322bn at the end of December 2019, an increase of 20% compared to December 2018, and consolidated net profits reached EGP 8.522bn, an increase of 18%.
According to the bank’s statement, the loan portfolio reached EGP 154bn by the end of December 2019, with a growth rate of 12% compared to December 2018, adding that its market share of total loans was 8.61% in October 2019, according to data available from the Central Bank of Egypt (CBE).
The percentage of facilities granted to small, medium-sized enterprises (SMEs) was 21.4% of total facilities in December 2019, exceeding the target specified by CBE in 2019.
Customer deposits reached EGP 208bn at the end of December 2019, and the bank’s market share of total deposits reached 5% in October 2019, according to CBE data.
The bank has a high utilisation rate of deposits, as the rate of loans to deposits reached 77% compared to an average of 44% for the Egyptian banking sector in October 2019, according to the latest data by the CBE, in light of the focus on the growth of basic banking operations while maintaining high liquidity rates in all currencies .
According to the bank, the rate of non-performing loans amounted to 2.79% by the end of December 2019, noting that the rate of coverage allocated to substandard loans amounted to 163%, while the capital adequacy ratio reached 20.65%, in light of the optimal application of credit policies with the investment portfolio of the bank devoid of any risky assets.
3- Banque du Caire
The business results of Banque du Caire revealed that the bank achieved a net profit before taxes of EGP 5.29bn at the end of 2019, compared to EGP 3.89bn at the end of 2018.
After the taxes, the bank’s net profits increased to nearly EGP 4bn compared to EGP 2.5bn in the previous fiscal year (FY). The bank achieved a 31% return on property rights and a 2.3% return on assets at the end of FY 2019, according to a statement by the bank.
The bank explained that the business result showed that the bank’s financial position continued to grow, bringing the total assets to EGP 183.4bn, with a growth rate of 10% compared to 2018. This is supported by an increase in the total loan portfolio of customers and banks by EGP 13.2bn to reach EGP 79.2bn, a growth rate of 20% compared to the end of FY 2018.
This increase was reflected in all business sectors, as the corporate loan portfolio increased by 7.2%, the SMEs portfolio by 146%, the retail banking portfolio increased by 18.5%, and the micro loan portfolio by 56.0%.
The bank’s deposit portfolio increased by EGP 20bn to EGP 151bn, with a growth rate of 15% compared to 2018.
The net income of the return increased by 29% compared to 2018 to reach EGP 8.3bn by the end of 2019, as it was reflected in the increase in the net income rate (NIM) to 5.2% on average in 2019 compared to 4.7% in 2018. Moreover, the net income from fees and commissions increased by 36% to reach EGP 1.5bn.
4- Faisal Islamic Bank
Faisal Islamic Bank – Egypt recorded an independent net profit in 2019 amounting to EGP 2.71bn, compared to EGP 2.51bn in 2018.
According to the bank’s statement, the bank’s revenues increased in 2019 to reach EGP 9.3bn, compared to EGP 8.25bn in 2018.
The assets of Faisal Islamic Bank – Egypt reached EGP 102.741bn at the end of December 2019, compared to EGP 93.772bn in December 2018, with a growth rate of 9.6%.
The bank said in a statement to EGX that its total business volume reached EGP 108.305bn in the end of December 2019, compared to EGP 95.442bn in December 2018, with a growth rate of 13.5%.
It pointed out that its current account balances and saving vessels reached EGP 86.036bn in December 2019, compared to EGP 79.057bn at the end of December 2018, with a growth rate of 8.8%.
The bank explained that the number of accounts managed by the bank increased to about 1.726m by the end of December 2019 compared to 1.624m accounts by the end of December 2018, with a growth rate of 6.3%.
5- Credit Agricole – Egypt
The financial statements of Credit Agricole – Egypt revealed that the bank’s profits, before taxes, increased to EGP 3.036bn at the end of 2019, compared to about EGP 2.793bn at the end of 2018, an increase of EGP 242.961m.
According to the lists sent to EGX, the bank’s net profits amounted to EGP 2.359bn at the end of December 2019, compared to about EGP 2.201bn at the end of December 2018.
Retained earnings amounted to EGP 4.971bn at the end of 2019, compared to about EGP 4.252bn at the end of 2018.
The bank explained that customer deposits recorded about EGP 39.634bn at the end of 2019, compared to EGP 43.932bn at the end of 2018, a decrease of EGP 4.297bn. The loan portfolio increased by EGP 3.086bn, to reach EGP 23.512bn, compared to EGP 20.426bn.
The bank’s investments in treasury bills recorded about EGP 7.198bn at the end of December 2019, compared to EGP 7.667bn at the end of December 2018, a decrease of EGP 469.073m.
6- NBK
The National Bank of Kuwait (NBK) – Egypt achieved a net profit of EGP 2.168bn at the end of 2019, compared to EGP 2bn at the end of 2018.
The bank’s financial statements revealed that the loan and facilities portfolio declined to EGP 31.5bn by the end of 2019, compared to EGP 38.6bn at the end of 2018.
It revealed that total customer deposits recorded EGP 51.5bn at the end of 2019, compared to EGP 53.1bn at the end of 2018.
The total individual funds of the NBK reached about EGP 5.5bn by the end of 2020, compared to EGP 4bn by the end of 2019.
The bank’s personal loan portfolio recorded about EGP 4.6bn at the end of 2020, compared to EGP 3.4bn at the end of 2019, according to the bank’s financial statements.
Credit card balances recorded about EGP 150m, and the bank’s real estate financing funds recorded about EGP 82.5m.
According to Sheikha Al-Bahr, deputy CEO of NBK Group, said that the bank is currently working to enhance its market share in the Egyptian market, in order to achieve more growth and integration between its international operations, and serves its strategy of income source diversification adopted by the bank.
7- HDB
The profits of the Housing and Development Bank (HDB) recorded about EGP 1.9bn by the end of 2019, compared to EGP 1.6bn by the end of 2018, an increase of 20%.
According to the bank’s financial statements, total customer deposits recorded about EGP 41.2bn at the end of 2019, compared to EGP 34.1bn at the end of 2018, a growth of 21%.
Bank loans reached EGP 19.7bn by the end of 2019, compared to EGP 15.6bn by the end of 2018, with a growth of 25.8%.
The General Assembly of the HDB adopted the estimated budget for 2020, the most prominent of which was the increase in deposit balances by about EGP 7bn, with a growth rate of 20%.
The bank said in a statement to EGX that the budget provides for an increase in granted loan balances by about EGP 3.4bn, a growth of 26.5%.
The bank aims to pump EGP 1bn in the real estate financing initiative in 2020, with a growth rate of 19.9%.
The planning budget is based on increasing the bank’s balances with treasury bills by about EGP 2.3bn, with a growth rate of 27.8%.
8- Bank Audi – Egypt
The results of Bank Audi – Egypt showed that the bank’s net profit reached EGP 1.403bn at the end of 2019, compared to EGP 1.267bn at the end of 2018.
After excluding the effect of the exchange rate changes in foreign currency capitals, net profits of the bank recorded EGP 1.554bn in December 2019, compared to EGP 1.251bn, bringing the growth rate to 24%.
Mohamed Bedir, CEO and managing director of Bank Audi – Egypt, said that the bank succeeded in maximising its profits in 2019, based on several factors, including the diversity of sources of income to achieve banking sustainability, and providing a package of the best services and banking products in the Egyptian banking market.
He added that the net income from revenue recorded EGP 2.782bn in December 2019, compared to EGP 2.383bn at the end of 2018, an increase of 16.8%.
Total assets at the end of FY 2019 reached EGP 75.265bn, compared to EGP 68.401bn in 2018, with a growth of 10%.
Customer deposits at Bank Audi – Egypt reached EGP 65.494bn at the end of December 2019, compared to EGP 59.149bn in December 2018, with a growth rate of 10.7%.
As for total property rights, they reached EGP 7.149bn in December 2019, compared to EGP 6.730bn by the end of December 2018, with a growth of 6.2%.
9- ADIB
The business result indicators of Abu Dhabi Islamic Bank (ADIB) – Egypt revealed that the bank’s net profits in 2019 increased to about EGP 1.102bn, compared to EGP 803.907bn in 2018. The bank’s profits before taxes were recorded at EGP 1.574bn, compared to EGP 1.270bn, an increase of EGP 303.939m.
Customer deposits increased by EGP 11.336bn to reach EGP 51.284bn in December 2019, compared to EGP 39.947bn at the end of 2018.
Finances and facilities for customers recorded about EGP 30.951bn in December 2019, compared to EGP 24.207bn in 2018, an increase of EGP 6.744bn.
10- IDB
Industrial Development Bank (IDB) achieved a net profit of about EGP 512m at the end of 2019, compared to profits close to EGP 300m at the end of 2018.
Hamdi Azzam, vice chairman of the bank, said in a statement that customer deposits in the bank recorded EGP 25bn at the end of 2019, with a growth rate of 32% compared to 2018, while the bank’s performing loan portfolio increased to EGP 12bn, with a growth rate of 38%.
11- UNB
The financial indicators of Union National Bank – Egypt (UNB) – Egypt showed that, during 2019, its profits increased by 59% y/y.
In a statement to EGX, the bank said that it achieved a net profit after taxes of EGP 429.283m in 2019, compared to a net profit of EGP 270.11m in 2018.
Interest income increased by 5%, to record EGP 3.883bn, compared to EGP 3.696bn in 2018.
The deposit portfolio recorded a decline in 2019 by 6.9%, to reach EGP 25.576bn, compared to EGP 27.484bn in 2018.
The loan portfolio declined in 2019 by 2.1%, recording EGP 13.341bn, compared to EGP 13.63bn in 2018.
